FXStreet (Edinburgh) - In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the outlook on the pair remains negative while below 1.7205.
“GBP/USD has started to break down from its range and we are viewing this as the market building an expanding top”.
“These are very difficult to trade, however while capped by 1.7205 the view will remain negative”.
“The recent high has been accompanied by a large divergence of the daily RSI – this reflects a loss of upside momentum and overhead lies the major resistance at 1.7300/31 – both of which suggest a more negative stance is required”.
“This resistance is a combination of a Fibonacci extension and the 50% retracement at 1.7331 (of the move down from the 2007 peak)”.